Email this pageMortgage Blogs
Making the Sale
February 2, 2010
Adapting to a Changing Financial Services World
To be a success in 2010, mortgage originators need to understand the macro trends that brought down the financial services industry the past couple of years. Consumers are still weary about the past, and it is going to affect their behavior in the near term, if not the long term. Marketing success means understanding these mind-set changes,
The "new frugality" is one of the financial services trends that will dominate American consumer behavior in 2010, according to the marketing intelligence company, Mintel Comperemedia, Chicago.
"The 2010 financial services consumer has seen economic hardship and he or she is cautious when it comes to spending money. This person also feels mistrustful of large financial institutions," said behavior economist Susan Menke.
"On the positive side, people are increasingly moving their lives online and connecting with one another - and with businesses - in new ways. Financial services companies have ample opportunities to strengthen customer relationships in 2010."
As for the new frugality, three quarters of consumers surveyed by Mintel said they expect to permanently increase their savings rate, while 84% will be more conservative with their money in the future.
Meanwhile, financial services companies are still perceived as the problem, as seven in 10 adults surveyed said they have lost trust with these firms.
"Companies need to regain people's trust, but they need to do it on the people's terms," said Ms. Menke. "By trusting a financial institution, customers are in essence allowing that brand to make decisions for them. In order to get to that point, companies need to look at trust from the individual's perspective, focusing on values like honesty, fairness and consistency. They need to make the customer feel safe and secure."
A positive sign is that only one in four respondents told Mintel they think financial services companies have a presence on social networking websites are annoying.
She commented, "Social media is rich with opportunities for financial services institutions, but companies need to be mindful of the medium's nuances. Marketing on social media is about making connections and establishing strong, trusting relationships."
But a negative trend is that nearly seven in 10 consumers are willing to change their bank or move to a "banking alternative" because of dissatisfaction with their provider.
Mintel said to stop the exodus, financial companies must focus on what the consumer really wants.
Ms. Menke said people want "open, honest communication" and advice to help them avoid getting into financial trouble.
To learn more, visit http://www.compremedia.com/blog.
Click here to access our archives
